Those interested in acquiring living space in Estonia's second largest city will find that the pickings are slim, and that the best alternative is to opt for a new apartment, since this way one's demands for exterior design, cleanliness and greenery can be more easily satisfied. Among exclusive residential spaces that currently meet these qualifications are at the intersection of Oru at Kassitoome streets and Jakobi and Jaani streets. The Turu Street complex (bottom right) offers built-in garages and fenced-in lawns.
For those wanting more space, the housing market in Tartu is lively, with significant interest in unrenovated buildings, particularly in the Tammelinn and Tahtvere neighborhoods. The possibilities for building a new house are, of course, much broader, though the ultimate location will more than likely be in the outskirts or even outside the city limits, as the amount of free land suitable for home construction is constantly on the wane.
Presently the market is seeing a stable supply of semifinished private houses.
As expected, high demand for residential lots has created solid possibilities for landowners near Tartu for splitting up plots and selling them individually. The new residential area in Kvissental and in the Vahi Street area has been practically sold out as urban units, while lots are still on offer in Uus-Ihaste, Torvandi, Ulenurme and Marja.
Compared with other residential areas, Kvissental (bottom left) is a remarkable exception, where the price of a lot includes complete development (sporting facilities, boat and yacht harbor, etc.)
For businesses looking to buy land, there are still available plots downtown - e.g., Kalevi, Ulikooli, Ruutli streets - though the market has yet to take off due to owners' high-price expectations or plain lack of interest to sell. In industrial areas demand has increased compared with recent periods, and particular interest can be noticed near Ringtee and on Ringtee Street in the Ropka industrial area, as well as on the road leading out of town toward Voru.
Among Tartu retailers, there has been a great deal of mobility as of late due to uncertainty and client-unfriendly planning. No significant changes in terms of vacancy have been noted in the city's shopping centers, though the largest malls remain the most popular.
As far as new space coming to market, we should point out the most important - the new Tartu Kaubamaja, the Emajoe Business Center, the next annex to Lounakeskus, among others.
Regarding office space, companies interested in downtown more often required parking, ventilation and air conditioners as factors in determining their ultimate choice, while smaller and medium-size spaces remain popular. The most recent office spaces that came to the market in 2003 were on Narva Road (Pria), while the building housing the southern police headquarters is currently being completed for public sector workers.
No significant correction of rental prices for office space has taken place recently, and the offer-demand ratio has remained optimal.
Quality office space in the city outskirts is offered by the former building of Tartu Maja at Betooni 9, on the border of Veeriku and Tahtvere, the former building of TET in the Ropka industrial area on Tahe Street and the former main building of KEK at the end of Riia Street. The market will get a boost with the completion of the Dentes building this winter.
Finally, regarding storage and production space, the market is still developing. Great attention is being paid to comfort and simplicity of access. Supply is so narrow (the one exception being the completed building in the backyard of a pizza shop on Voru Street) that investors have to create their own space - e.g., Bambona on Teguri Street, Rehviekspert at the beginning of Ringtee Street, New Holland where Rapina Road starts and the planned production-warehouse building at the end of Turu Street.
Rental offers are essentially influenced by tenants' short-term and non-warranted rental agreements.
Peep Vooro is Tartu office manager
of Ober-Haus Real Estate Company, Estonia.
